In the News

Organic’s Sweet Partnership
By Kelly Rehan

Candy Industry Magazine, BNP Media (September 2007 issue)

Today, everything from candy canes to cotton candy boasts an organic doppelganger. But chocolate has offered this wave the biggest welcome.

Organic is everywhere. The Organic Trade Association’s 2007 Manufacturer Survey found that U.S. organic food sales reached $16.9 billion in 2006, a whopping 22.1% growth from the previous year.

But to put it all in perspective, organic food sales represent approximately 3% of all food and beverage retail sales. While that figure may seem small, it’s deceiving. Organic is hot, and it is quickly becoming what some experts are calling the “future of confectionery.”

Organic chocolate, specifically, has made plenty of noise. With consumers responding to recent research touting chocolate’s natural health properties, combined with mainstream manufacturer acquisitions, chocolate has become the largest growing snack segment in the U.S. organic market, according to industry findings.

“In our experience, the U.S. market has always lagged a few years behind the European market in accepting trends in the organic food sector, but the increase in interest and volume in the U.S. in organic confections in the last three years has been amazing,” says Dave Alexander, president of Arlington, Mass.-based Global Organics, Ltd. “I think we’ve probably leap-frogged Europe in this category.”

High-profile acquisitions like Cadbury Schweppes Plc’s 2005 take-over of Green & Black’s and Hershey’s purchase of Dagoba in October 2006 moved organic confectionery to the attention of the general public.

Additionally, recent raves about chocolate’s potential healthfulness has certainly engaged organic’s “usual suspects” as appreciative consumers—those who are not only concerned about health, but are also socially and environmentally minded.

However, as the market has grown, the “typical” organic consumer stereotype has, for the most part, melted away.

“The organic confectionery market has been growing nearly 20% annually for the past five years, with most growth in the chocolate category because it goes hand-in-hand with its emerging health benefits” says Jenn Ellek, director of trade communications and marketing for the National Confectioners Association. “In the past, there was a core organic audience, but now it’s become very mainstream—they’re mothers, teenagers, baby boomers.”
Natural vs. organic

Perhaps most confusing to consumers is the difference between organic and “natural” or “all natural.”

“Organic and natural are very similar in that they both do not contain artificial colors or flavors, no preservatives and no hydrogenated oils,” says Amber Huguet, development and marketing manager for KFM Food International, distributor of Terra Nostra Organic Chocolate. “The main difference is that to be considered organic, you must be certified.”

Keeping current on flavor trends, Vancouver, Canada-based Terra Nostra recently released organic Omega Dark, Goji Berry, Pomegranate and Sinfully Smooth Creamy Caramel bars. However, the overall favorite is the company’s 73% Intense Dark bar.

Though some consider organic versus natural a harmless misunderstanding, others see a much greater disparity between the two.

“Unfortunately, many consumers assume if a product is labeled as natural, that it’s going to be healthy for them or that they are acting out of conscious for the environment,” says Frederick Schilling, founder of Dagoba. “This, unfortunately, isn’t necessarily the case with natural products. Pesticides, herbicides and many other potentially harmful chemical additives can be in a product and that product may still be marketed as ‘natural.’”

Societal and environmental links

One might choose an organic bar over a regular chocolate bar for a number of reasons—pure ingredients and clean label, or possibly for the perception that it’s of superior quality.
Moreover, organic is often linked to Fair Trade, and many who purchase organic do so with motives that transcend ingredient statements.

“Many of our consumers are of a progressive mindset, realizing that we need to be proactive as citizens and companies to help stop environmental and farmer exploitation,” Schilling says.
Nowadays, consumers demonstrate a greater concern of what they’re eating and where their food is derived. More than ever, manufacturers are putting a greater emphasis on educating about the bean-to-bar process and promoting fair treatment of cacao farmers.

“The only difference between organic and non-organic cacao is pretty much the certification and the fumigation of the beans when they come into port,” Schilling explains. “I would say that 95% of the world’s cacao is organic by default, simply because most farmers can’t afford to purchase chemical inputs.”

Terra Nostra Organic Chocolate also believes organic is a world conscious, ethical business.
“Not only are we organic but we are equitable trade,” Huguet says. “We are the founders of equitable trade, which is an initiative to improve our trading system and help circulate wealth in our [farming] countries.”

Possible barriers

For all its benefits, organic poses plenty of problems for manufacturers. Time constraints, high costs and finding certified organic suppliers can complicate organic production.
“If a confectioner that is currently making non-organic products wants to make the switch to organic products, some ingredients that they were previously using may not be available as organic,” Schilling notes.

Manufacturers should also be prepared for the time and cost associated with not only becoming certified organic, but also with acquiring proper ingredients.

“Demand for organic ingredients is very high, and lead times can be much longer than sourcing conventional ingredients, so you need to be planning much further in advance for your needs,” Alexander says.”

But in the end, the time, money and effort can be well worth it, as the organic numbers show. And while consumers may deliver a laundry list of reasons to buy an organic chocolate bar, bet that the top reason is taste.

“Organic, fair trade, etc. means little if a consumer isn’t excited about putting your product in their mouth a second time,” Alexander notes.

Study supports organic non-chocolate

Findings recently published in a UK medical journal revealed that preservatives and artificial coloring triggered hyperactive behavior in children.

The study reinforces the beliefs of many organic non-chocolate manufacturers—that candies made with certified organic ingredients are a better choice for children.

Luna Roth, president of Ontario, Canada-based Pure Fun, for instance, says she’s believed in the research long before its formal release. Roth touts her variety of “better-for-you candy,” which includes organic cotton candy, candy canes and hard candies, for the ingredients she leaves out.

Refusing to include artificial colors, FD&C colors, artificial flavorings and synthetic chemicals, Pure Fun has earned endorsements from pediatricians, nutritionists, allergy associations and plenty of candy-craving kids.

On that same note, College Farm Organic, a trademark of Simon Candy Co. of Elizabethtown, Penn., is keeping an eye out for young consumers during one of the candy industry’s most celebrated holidays—Halloween.

Naturepops Halloween Bag recently joined the company’s line of certified organic hard candies. Free of mystery ingredients, the Halloween pops contain no gluten, corn syrup, GMO’s, nuts, soy, trans fats, eggs or dairy ingredients. Varieties include Chocolate and Citrus Blast flavors.

Even marshmallows, another kid favorite, are now available in an organic alternative. Stamford, N.Y.-based Toonie Moonie Organics is best known for its organic marshmallow creme. Available in 10 flavors—Vanilla, Chocolate, Caramel, Coconut, Banana, Pineapple, Cherry, Orange Creme, Lemon, and Strawberry—Toonie Moonie’s marshmallow creme, along with all its confections, promises to deliver “sweet treats with a touch of kindness.” That’s sure to ease any parent’s mind.